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AllianceBernstein files lawsuit over unsuccessful Arizona sports complex project | Finance


Nashville-based asset management firm AllianceBernstein Holding LP is part of a group that has filed a lawsuit against Chicago-based bond dealer BC Ziegler, alleging fraud in the underwriting of $280 million in municipal securities for an Arizona sports complex that is now in bankruptcy. Other plaintiffs in the lawsuit include The Vanguard Group Inc. and Macquarie Group’s Delaware Funds. The lawsuit, taking place in Arizona Superior Court, accuses BC Ziegler and law firm Gust Rosenfeld of causing over $200 million in losses for the plaintiffs. The securities were issued through the Arizona Industrial Development Authority in 2020 and 2021, with the asset management companies owning the majority of the debt. The lawsuit also mentions developers and managers Randy and Chad Miller, who established Legacy Park. The Millers claimed that organizations like Manchester United and Real Salt Lake had agreed to use the park, but these claims were disputed in the bond prospectus. Legacy Cares, a nonprofit set up by the Millers, went bankrupt in May 2023, delaying the park’s opening and causing financial losses for investors. Legacy Cares was eventually sold in October 2023 for $26 million, with bondholders receiving $2.4 million in cash and an 11 percent equity stake in the new owners. AllianceBernstein, Vanguard, and Delaware Funds are seeking damages for the alleged fraud. AllianceBernstein did not provide a comment when contacted by Bloomberg and other news outlets.

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